Goan iron ore exports is again getting on sharp upward curve. As per customs data maintained by SteelMint, iron ore exports from Goa (Mormugao and Panaji Ports) is likely to cross 2 MnT mark in first month of FY17. On whole, Indian iron ore exports is expected to reach to 2.6 MnT in Apr’16, which was around 1.7 MnT in Mar’16.
Till 2011, India was the third largest exporter of Iron ore. Goa contributes 70% of iron ore export and remaining 30% exports made from other states. But, due to imposition of mining ban by government, mining was halted. Now, with resumption of mining operations in Goa, iron ore exports from Goa also resumed.
Vedanta-Tops the list among Indian iron ore exporters
Vedanta Ltd, maintains its first position among iron ore exports from Goa. In Apr’16, the exporter, likely to export around 1 MnT iron ore to China. The exporter contributed around 50% of the export share followed by Fomento Resources, Royal line Resources, Chowgule & Company etc.
Inorder to boost exports, Indian government had abolished export duty on ore (below 58%) to nill. This had granted a relief to Indian iron ore exporters. As, Goa mainly exports low grade ore to China, exports gears up.
Alongside, sharp surge in global iron ore prices have also supported Indian iron ore exports. Prices are up upon strengthening steel prices in China. Current prices for iron ore fines Fe 62% fines are assessed at USD 63/MT, CFR China on 28 Apr’16.
On similar lines, Indian iron ore export offers from Fe 57% fines are hovering at USD 41/MT, FoB India and that of USD 48/MT CFR, China.Rising global iron ore prices in China will further boost low grade iron ore exports from Goa.
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